Pound surges after bounce for manufacturing

The pound rose on foreign exchange markets after a surprise bounce in the manufacturing sector eased the pressure on the Bank of England to extend its £200bn 'money printing' scheme.

Sterling hit a day's best of $1.609 against the dollar after a surge in exports saw manufacturing output accelerate for the first time in seven months in October, said a survey.

In an encouraging snapshot of UK industry, the Chartered Institute of Purchasing and Supply reported a 'sharp' increase in hiring across the sector as firms signed up workers to satisfy demand.

Optimism: There was a reported 'sharp' increase in hiring across the sector

The report reduces the likelihood that Bank policymakers will pump
more new money into the economy through their so-called quantitative
easing programme when they meet to discuss interest rates later this
week.